Chapter 5: Managing Flexible Work Patterns PDF

 Chapter 5: Managing flexible patterns of work for competitive advantage  Learning outcomes After reading this chapter, you should be able to: Define the concept of flexibility Explore the evolution of contemporary flexibility Discuss the flexible-firm model Expl...

 Chapter 5: Managing flexible patterns of work for competitive advantage  Learning outcomes After reading this chapter, you should be able to: Define the concept of flexibility Explore the evolution of contemporary flexibility Discuss the flexible-firm model Explain the impact of smart information communication technology on the workplace Discuss the changing dynamics of the workplace and their impact on new forms of flexibility.  The evolution of contemporary flexibility Pilbeam and Corbridge (2006) define flexibility in organisational terms as “the ability of the organisation to adapt the size, composition, responsiveness, and cost of the human resources to achieve organisational objectives”. The concept of organisational flexibility emerged in the 1980s in the context of deregulated labour markets. The term ‘numerical flexibility’ is when the size of the workforce can be adjusted to the levels of economic activity easily and quickly. The term ‘work-time flexibility’ refers to how the number of hours an employee works for can be adjusted.  The evolution of contemporary flexibility, cont. Flexibility also included functional flexibility, which was the reversal of the Taylorist (or scientific management) practices of fragmentation, deskilling, and restrictions of work practices (including the demarcation of lines between jobs). Organisational flexibility is a structural response to the development of these flexible work patterns. However, little is new in any of these patterns of work. What is new is management’s explicit ability to develop multiple forms of flexibility. Organisations with the structural capacity to adapt and innovate may handle change better than traditional bureaucratic organisations.  The flexible-firm model The flexible-firm model breaks with hierarchical internal labour markets. Critics say it creates a polarised workforce with an elite core workforce and a disenfranchised, low- skilled, low-wage peripheral workforce.  Technology-driven flexibility The convergence of telecommunications and information and communication technology (ICT) is referred to as smart ICT, and this has led to a shift in practices in the 21st century workplace. Owing to internet connectivity and cloud computing, work has also shifted into cyberspace. Project teams can be drawn from global workforces (a talent cloud). The internet of things (IoT) refers to physical objects that are exchanging data with other physical objects over the internet. Once data has been gathered, big data can be analysed with computers to reveal patterns and assist with decision-making.  Virtual work and workplaces Flexible virtual work can suit both sides of the employment relationship. From a human capital and talent management perspective, this can be a strategy to attract and retain highly skilled knowledge workers. However, it often means that the HR department has to develop systems and structures to integrate these workers into the strategic focus of the organisation. In addition, this situation also requires a review of: o managerial style o human resource development o performance management o culture o communications.  Job crafting and idiosyncratic jobs In traditional job design an employee is hired to fill a vacant role, and a manager has designed the duties of this role to fulfil the current goals of an organisation. In job crafting duties are shaped by and exclusive to the individual performing the role. Idiosyncratic jobs are formal duties that match the talents of an individual and which fit their abilities and interests (although the manager may help the individual shape the role, and this role may exist after the individual leaves the organisation). Idiosyncratic jobs encourage unplanned organisational learnings. These roles can provide short-term benefits, such as increased retention and greater innovation. They can also lead to long-term benefits in terms of organisational transformation.  Possibilities and challenges in virtual work Virtual work allows a reduction in the costs of office space. However, an organisation may struggle to trust that virtual workers are putting effort into their jobs. Virtual work can make it more difficult for line managers to implement organisational policies, and for them to be seen to be fair. If a blended team exists (with physically present workers and virtual workers) an effort needs to be made to main good team dynamics. The attitudes of the managers affect the success of the arrangement. A virtual work arrangement can make knowledge  The employer perspective on flexible patterns of work Employers perceive several advantages to flexible work patterns: o They reduce fixed costs. o They help attract and retain staff. o Most importantly, they allow the organisation to respond quickly to changes in market demands through adjusting the level of human resources. o Employees can be moved from one job to another. o Virtual workers can be used. o Work can be outsourced. o Work can be shifted offshore.  The employer perspective on flexible patterns of work, cont. Employers perceive several disadvantages to flexible work patterns: o Higher direct costs o More complex administration o Management must increase planning and coordination o Communication difficulties o Increased costs of training. These factors may diminish the perceived competitive advantage of flexible work patterns to the extent that they are not a viable option.  The employee perspective on flexible patterns of work Employees perceive several advantages to flexible work patterns: o The ability to combine work with outside responsibilities (caring) or interests o Greater satisfaction with the job (often because of skills training) o Improved motivation (often because of multi-skilling) o Less tiredness and burnout. Employees who could not be part of a normal workforce can be incorporated through flexible work patterns.  The employee perspective on flexible patterns of work, cont. Employees perceive several disadvantages to flexible work patterns: o Unequal treatment in terms of pay and benefits o Reduced career opportunities o Limited training opportunities o Increased insecurity o Increased stress o The challenge to the ‘psychological contract’. Workers in these relationships are likely to be caught in a permanent pool of lower-skilled workers with little opportunity to acquire new skills. Critics point to the de-skilling and work-intensification that occurs. The constant change in work demands requires a continual renegotiation of the employment relationship and can impact on workers’ mental health.